(LOW) Lowe's Companies - NYSE
Sector: Consumer Cyclical | Industry: Home Improvement Retail | Exchange: NYSE (USA) | Market Cap: 121.888m USD | Total Return: 2.7% in 12m
Avg Turnover: 660M
EPS Trend: -65.3%
Qual. Beats: 4
Rev. Trend: -45.7%
Qual. Beats: 2
Warnings
Beneish M-Score 1.00 > -1.5 - likely earnings manipulation
Altman Z'' 0.81 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
Lowes Companies, Inc. (LOW) is one of the largest home improvement retailers in North America, operating in the United States and Canada. The company offers a broad assortment of products spanning construction, maintenance, repair, remodeling, and decorating, including categories such as appliances, lumber, lawn and garden, kitchens and bath, hardware, building materials, millwork, paint, plumbing, tools, electrical, flooring, and décor.
In addition to merchandise, Lowes generates revenue from installation services delivered through independent contractors, extended protection plans, repair services, and design/distribution services for interior surface finishes aimed at home builders and property managers. The company serves three primary customer groups: professional contractors, individual homeowners, and renters, selling both national brand-name and proprietary private label products.
Lowes distributes through an omnichannel network that includes its Lowes.com website, mobile applications, retail home improvement stores, outlet stores, and branch locations. Founded in 1921 and headquartered in Mooresville, North Carolina, Lowes is classified in the GICS Consumer Discretionary sector under the Home Improvement Retail sub-industry and is considered a large-cap stock. A notable feature of the home improvement retail model is the dual demand driver of consumer DIY projects and professional contractor (Pro) purchases, which Lowes addresses through its dedicated pro customer segment.
- Housing market weakness pressures comparable sales growth
- Home Depot competition intensifies for pro contractor share
- Tariff costs on imported goods compress gross margins
| Net Income: 6.64b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA -0.85 > 1.0 |
| NWC/Revenue: 2.13% < 20% (prev 0.34%; Δ 1.79% < -1%) |
| CFO/TA 0.18 > 3% & CFO 9.84b > Net Income 6.64b |
| Net Debt (45.9b) to EBITDA (12.2b): 3.78 < 3 |
| Current Ratio: 1.09 > 1.5 & < 3 |
| Outstanding Shares: last quarter (560.0m) vs 12m ago 0.0% < -2% |
| Gross Margin: 33.80% > 18% (prev 31.27%; Δ 2.53% > 0.5%) |
| Asset Turnover: 176.3% > 50% (prev 183.5%; Δ -7.14% > 0%) |
| Interest Coverage Ratio: 6.30 > 6 (EBIT TTM 9.90b / Interest Expense TTM 1.57b) |
| A: 0.03 (Total Current Assets 22.2b - Total Current Liabilities 20.3b) / Total Assets 54.9b |
| B: -0.18 (Retained Earnings -9.88b / Total Assets 54.9b) |
| C: 0.20 (EBIT TTM 9.90b / Avg Total Assets 50.2b) |
| D: -0.14 (Book Value of Equity -9.27b / Total Liabilities 64.2b) |
| Altman-Z'' = 0.81 = B |
| DSRI: 3.0 (Receivables 1.15b/94.0m, Revenue 88.4b/83.2b) |
| GMI: 0.93 (GM 31.27% / 33.80%) |
| AQI: 6.77 (AQ_t 0.19 / AQ_t-1 0.03) |
| SGI: 1.06 (Revenue 88.4b / 83.2b) |
| TATA: -0.06 (NI 6.64b - CFO 9.84b) / TA 54.9b) |
| Beneish M = 2.01 (Cap -4..+1) = D |
As of June 25, 2026, the stock is trading at USD 221.45 with a total of 2,438,973 shares traded. Over the past week, the price has changed by -1.15%, over one month by +4.42%, over three months by -5.08% and over the past year by +2.65%.
Current recommended Stop Loss: 213.20 (which is 3.7% or 1.3 ATR below the current price).
Lowe's Companies has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy LOW.
- StrongBuy: 18
- Buy: 4
- Hold: 13
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 263.7 | 19.1% |
P/E Trailing = 18.366
P/E Forward = 17.2712
P/S = 1.3776
P/B = 321.8177
P/EG = 1.4191
Revenue TTM = 88.4b USD
EBIT TTM = 9.90b USD
EBITDA TTM = 12.2b USD
Long Term Debt = 36.8b USD (from longTermDebt, last quarter)
Short Term Debt = 1.85b USD (from shortTermDebt, last quarter)
Debt = 47.1b USD (from shortLongTermDebtTotal, last quarter) + Leases 4.60b
Net Debt = 45.9b USD (calculated: Debt 47.1b - CCE 1.24b)
Enterprise Value = 168b USD (122b + Debt 47.1b - CCE 1.24b)
Interest Coverage Ratio = 6.30 (Ebit TTM 9.90b / Interest Expense TTM 1.57b)
EV/FCF = 22.02x (Enterprise Value 168b / FCF TTM 7.62b)
FCF Yield = 4.54% (FCF TTM 7.62b / Enterprise Value 168b)
FCF Margin = 8.62% (FCF TTM 7.62b / Revenue TTM 88.4b)
Net Margin = 7.51% (Net Income TTM 6.64b / Revenue TTM 88.4b)
Gross Margin = 33.80% ((Revenue TTM 88.4b - Cost of Revenue TTM 58.5b) / Revenue TTM)
Gross Margin QoQ = 32.68% (prev 39.16%)
Tobins Q-Ratio = 3.05 (Enterprise Value 168b / Total Assets 54.9b)
Interest Expense / Debt = 3.33% (Interest Expense 1.57b / Debt 47.1b)
Taxrate = 24.06% (2.10b / 8.74b)
NOPAT = 7.52b (EBIT 9.90b * (1 - 24.06%))
Current Ratio = 1.09 (Total Current Assets 22.2b / Total Current Liabilities 20.3b)
Debt / Equity = -5.09 (negative equity) (Debt 47.1b / totalStockholderEquity, last quarter -9.27b)
Debt / EBITDA = 3.78 (Net Debt 45.9b / EBITDA 12.2b)
Debt / FCF = 6.02 (Net Debt 45.9b / FCF TTM 7.62b)
Total Stockholder Equity = -10.2b (last 4 quarters mean from totalStockholderEquity)
RoA = 13.24% (Net Income 6.64b / Total Assets 54.9b)
RoE = -64.84% (negative equity) (Net Income TTM 6.64b / Total Stockholder Equity -10.2b)
RoCE = 37.34% (EBIT 9.90b / Capital Employed (Equity -10.2b + L.T.Debt 36.8b))
RoIC = 21.31% (NOPAT 7.52b / Invested Capital 35.3b)
WACC = 6.74% (E(122b)/V(169b) * Re(8.37%) + D(47.1b)/V(169b) * Rd(3.33%) * (1-Tc(0.24)))
Discount Rate = 8.37% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -88.19 | Cagr: -1.17%
[DCF] Terminal Value 77.83% ; FCFF base≈7.24b ; Y1≈8.24b ; Y5≈11.9b
[DCF] Fair Price = 237.5 (EV 179b - Net Debt 45.9b = Equity 133b / Shares 561.0m; r=8.35% [WACC [floored]]; 5y FCF grow 14.07% → 2.50% )
EPS Correlation: -65.32 | EPS CAGR: -3.69% | SUE: 2.13 | # QB: 4
Revenue Correlation: -45.65 | Revenue CAGR: -1.79% | SUE: 0.93 | # QB: 2
EPS current Quarter (2026-07-31): EPS=4.25 | Chg30d=-3.94% | Revisions=-81% | Analysts=29
EPS next Quarter (2026-10-31): EPS=3.14 | Chg30d=-0.88% | Revisions=-13% | Analysts=29
EPS current Year (2027-01-31): EPS=12.50 | Chg30d=-0.91% | Revisions=-47% | GrowthEPS=+1.8% | GrowthRev=+8.0%
EPS next Year (2028-01-31): EPS=13.48 | Chg30d=-1.34% | Revisions=-58% | GrowthEPS=+7.8% | GrowthRev=+3.1%
[Analyst] Revisions Ratio: -81%